70% of people aren’t saving adequately for their retirement
Looking back at this year’s stats, around 70% of working-age people who sought advice from deVere this year to date were not saving enough for their retirement. This is an incredibly high number.
These mainly British savers, who we took on as a company over the past year, were not saving adequately in order to live a comparable lifestyle in retirement.
When we first meet new clients, a comprehensive study is undertaken of their present financial situation. Following this we find out the age they’d like to retire and how much money they need to save during their working lives in order to reach their retirement ambitions.
In 2021, only around 30% were saving enough to make their retirement goals a reality, and to ensure they have enough money to last during their retirement.
It’s worrying that such a high number of people aren’t saving enough for their retirement, particularly as we’re living longer now, meaning our savings accrued during our working lives need to last longer.
Moreover, it’s unlikely government will be able to support older people in the future as they’ve done in past generations. Not forgetting the fact that many company pension schemes have increasing deficits.
We also cannot forget that it may not be possible to work for longer if necessary due to poor health, a lack of career opportunities, or the need to look after sick or elderly relatives.
Taking all this into account, how much income should we be saving for our retirement? Well, this will depend on your age and when you started saving, amongst other factors.
However, generally speaking, we recommend that those aged between 25 and 34 should be saving between 15 and 20% of their income, for those between 35 and 44 this should rise to 20 to 30%, for the 45 to 54 bracket it moves up to 30-40%, and those over 55 would need to save substantially more. Naturally, this will all depend on the individual and their personal and professional circumstances.
So, wherever you are in your working life, the time to start saving is now. The earlier you start, the more straightforward it will be to hit your long-term objectives. And, of course, it’s never too late to start saving for your retirement. Click here for my YouTube, LinkedIn profile and Twitter accounts.